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Daily Technical View on Nifty

Bulls in pause mode at the new highs..

Observation:

The choppy movement continued in the market in the last couple of sessions and Nifty closed Tuesday higher by 26 points amidst narrow range movement. After opening with a positive note, the market moved up further in the early-mid part of the session. It later shifted into a narrow range move till the end. A small candle was formed on the daily chart with almost identical open and close. This candle pattern is indicating a formation of doji type pattern at the highs, which is back-to-back in the last two sessions. Normally such doji formations at the new highs is not a good sign for the market at the highs. formation of one more doji with small range movement in the next session could possibly confirm reversal pattern after confirmation.

Conclusion: The near-term uptrend of Nifty remains intact. Though, Nifty is consolidating at the higher levels, still there is no confirmation of any significant reversal pattern building at the highs. Further upmove from here could pull Nifty towards 24900 levels in the next week. Immediate support is at 24450 levels

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